As your budget permits convert term into universal.One word of caution though. Long term interest rates are critical to the performance of universal life insurance.Because they’ve been depressed for several years and will likely continue so, you must get the universal life with an unconditional death benefit guarantee.Here’s an example using our 30 year old male. The $500,000 universal life insurance policy premium is $2,871 per year. This compares with the already discussed $700 term and $3,650 whole life premiums.Let’s say you really do decide life insurance isn’t important when you reach 65.
Down a rat hole like the term plan? Nope!The cash surrender value would be at least $85,501. It might well be over $100,000 based on the actual competitive interest rates credited to the policy over the 30 years.By paying more in premium using universal life you guarantee the death benefit for as long as necessary … plus you have the ability to recover your expense if you wish to cash it in.
Responses to 'The Best Kept Secret About Life Insurance'